Investments

The average family office portfolio returned 15.5 percent in 2017, up from 7 percent the previous year.

Trend towards riskier, more illiquid investments continues

The year saw a continuation of family offices’ drive towards higher risk, more illiquid investments in their pursuit
of yield. As part of this, nearly half (46 percent) of the average family office portfolio is now allocated to
alternative investments.Read more

Structures

Slow progress on preparing for looming wealth transfer70 percent of family offices expect a generational transfer in the next ten to 15 years.

Next-gen family members are taking a more active role within the family office, indicating that the handover is beginning to take place. Amongst the next generation of family members, three in ten (29 percent) family offices now hold management
or executive roles, while 23 percent sit on the board. Read more

Purpose

Family offices increasingly manage their wealth with purpose

Almost two-fifths (38 percent) of family offices are now engaged in sustainable investing. As part of this trend,
impact investing has experienced a particularly significant increase in participation; the amount of family offices
making such investments has increased from one quarter in 2016 to one third in 2017. Read more